We do this by using extraordinary people and flexible capital to help companies solve problems. Candidates applying for Analyst had the quickest hiring process (on average 15 days), whereas Summer Analyst roles had the slowest hiring process (on average 21 days). On-campus interview followed by a super day in New York. There are also infrastructure investment banking groups, which advise sponsors and asset owners on deals rather than investing in debt or equity directly. 24-02-2023 16:44. On the other hand, theres also little downside risk because people cant stop drinking water or using electricity even if theres an economic crisis. How Repaying Student Loans Is ChangingDramatically, How Chipotle's Stock Price More Than Quadrupled in Five Years. The LLCR is defined as the Present Value of the total Cash Flow Available for Debt Service over the loans life divided by the current Debt balance. These funds have advantages over traditional PE firms because their returns expectations are lower, and theyre non-taxable in Canada, so they can afford to out-bid other parties and pay high prices for Canadian assets. But theres also more risk because passenger traffic could plummet in an economic recession, a war, or a pandemic. Your information will not be shared. Customer Service. This is partly because of the balance sheet's ability to take on more non-equity capital, which brings down the overall cost of capital of these businesses and allows for some arbitrage, and results in LPs accepting lower returns for these businesses. Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling. Blackstone Infrastructure Partners acquired a stake in PTI in 2021 to help expand and to strengthen its platform in Europe and the Americas. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. Qui in perspiciatis fugit aut nemo quia quia culpa. Sectors within infrastructure include utilities (gas, electric, and water distribution), transportation (airports, roads, bridges, rail, etc. Thank you so much for the guidance you provide! If someone was infra PE-adjacent (Fund of Funds), would it be better to simply hustle to build up a network? When construction is finished, the construction loan may be refinanced and replaced with a permanent loan as the asset starts operating and eventually stabilizes. Brian great guide, as always. Q: How would you compare the risk and potential returns of different infrastructure assets? Unlock with Facebook Unlock with Google Unlock with Linkedin Principal (8) $676 Director/MD (22) $599 Vice President (85) $362 The hiring process at The Blackstone Group takes an average of 22 days when considering 387 user submitted interviews across all job titles. " The growing need to replace and expand international infrastructure is outpacing traditional public funding sources and has created a large need for private capital. Im a civil engineer by training, with a few years of Big 4 infra advisory experience (Canada and UK). Vel sed eos nihil enim nam. Et possimus quas dolores ea. I dont think there is one best option because people tend to get in from varied backgrounds. Wall Street: PCE-Core, indeksy w d, USD si umacnia Blackstone Infrastructure Associates L.P. Delaware. First round of interviews are done over zoom. Hope this helps. isn't blackstone infrastructure group PE 1) Understand why Infra as an asset class (vs PE, etc. ), and energy (power plants, pipelines, and renewable assets like solar/wind farms). What should I expect? New York, NY, July 18, 2019 - Blackstone (NYSE: BX) today announced that it has held the final close of its inaugural fundraising phase for Blackstone Infrastructure Partners (BIP). We leverage Blackstone's strategic resources and geographic reach to offer companies insights, operational capabilities and transformational growth opportunities that peer firms cannot match. We guarantee 100% privacy. Names include the Abu Dhabi Investment Authority, the Abu Dhabi Investment Council, the China Investment Corporation, and GIC in Singapore. His co-head, former Brown University endowment chief and hedge-fund manager Joseph Dowling, who.css-1h1us5y-StyledLink{color:var(--interactive-text-color);-webkit-text-decoration:underline;text-decoration:underline;}.css-1h1us5y-StyledLink:hover{-webkit-text-decoration:none;text-decoration:none;} joined the firm in January, will become sole head of Blackstone Alternative Asset Management, the worlds largest funds-of-hedge-funds business. News Corp is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. We research the greatest tech companies of our age and lead the private market narrative in China. Ive found your article really insightful and was hoping to ask for a bit of advice on breaking into the industry. The process took 1 day. Didn't get the offer so can't comment on comp. 10+ interviews is fairly common for Blackstone (at least in London). Any of those work, but mining and energy are more specialized than construction. JP Morgan and Deutsche Bank are also active in the space. Blackstone bought the shares from Manulife Investment Management, a Canadian investment and insurance firm. Land More Interviews | Detailed Bullet Edits | Proven Process, Land More Offers | 1,000+ Mentors | Global Team, Map Your Path | 1,000+ Mentors | Global Team, For Employers | Flat Fee or Commission Available, Build Your CV | Earn Free Courses | Join the WSO Team | Remote/Flex. It tends to be difficult to move into generalist roles coming from infrastructure because the perception is that its very specialized. This added complexity is something I think I'd enjoy. So construction is probably the safest bet for generalist IB/PE roles. our Subscriber Agreement and by copyright law. Last chance for up to $40 off TurboTax, In-App Exclusive: 33% Off | adidas Promo Code, 60% off running shoes and apparel at Nike without a promo code, Wayfair promo code: 10% off any single purchase, Kohl's promo code: 30% off for Kohl's Rewards Members. Tempore ab qui doloremque quia sequi iste voluptatum. Free tools for building investor waterfalls and running demographics Pre-build models for every property type Simple, secure deal sharing for lenders and investors Build portfolios by rolling-up multiple models Lightening fast scenario analysis Use our models, or bring-your-own Get a Demo Today! ) Know anyone whos heard from the Infra group? both in person and virtual. Quia omnis voluptatibus omnis velit assumenda quas harum. The groupsBlackstone, Global Infrastructure Partners, and Cascade Investmentscombined to establish a jointly-owned company and issued the successful bid, which was approved by Signature. What additional experience/credentials can I get to set myself apart? Many of these assets are extremely stable and last for decades. I was wondering how difficult you think it would be to break into infra PE as an analyst from a tech IB group. Est est sed eum iusto ducimus fuga et nulla. Stringer Bell's reply is on point. Campbells Soup Sales Were Declining. Its probably a bit easier to get into direct lending because it doesnt have private equity in the name. is it possible for the section where you mentioned TV is determined by the perpetuity growth rate or an exit multiple, that for infrastructure assets, i generally see them modelled to the end of concession in which case there isnt really a terminal value. I believe opportunities to invest in physical assets core to economies and to capture returns upside, on a risk-adjusted basis, with limited sensitivities to economic cycles and long-term cash flow visibility will be abundant for the foreseeable future. In terms of methodology, people tend to use both perpertuity and multiple based methodologies. WSO depends on everyone being able to pitch in when they know something. Comparable projects cost $1,000/kW currently and are expected to increase in price at 2% per year, with a useful life of 40 years. Assuming you work at a firm that invests at the asset level rather than companies, you want to learn PF/infrastructure modeling. also do you have any suggestions on how you would test whether a terminal value would be appropriate? You have a few infra threads around on WSO - please search for those. Glassdoor has millions of jobs plus salary information, company reviews, and interview questions from people on the inside making it easy to find a job thats right for you. The Discount Rate should be based on the weighted average interest rate on the Debt. Apr. With telecom assets like cell phone towers, the risk and potential returns are even higher, with much of the returns expected to come from capital appreciation. Magni quae nihil iste itaque blanditiis dolorum. Its because of the specialization and deal/modeling skill set. Really appreciate you taking the time to put this together. You can divide infrastructure investors into a few main categories: actual private equity firms (fund managers), large banks, pension funds, sovereign wealth funds, and the investment arms of insurance companies. blackstone managing director salary. Were the technicals infra oriented or more general PE questions? Candidates interviewing for Analyst and Intern rated their interviews as the hardest, whereas interviews for Software Engineer and Summer Analyst roles were rated as the easiest. So private equity teaches you the art of long-term view. Overall quick and moderate process. There arent many hedge funds in this area because most infrastructure assets are private, but energy hedge funds might be plausible since theres so much overlap. Blackstone's Portfolio Operations team partners with companies to create purposeful, valuable, growth-oriented businesses. I have focused my recruiting primarily on traditional PE focusing on LBOs, but came across this opportunity and decided to interview for it. At quas dolor non. ely funeral home neptune, nj; longest nfl game weather delay; cari laque bio; Online Forms. All Rights Reserved. WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file. Interviews at The Blackstone Group Experience Positive 55% Negative 15% Neutral 30% Getting an Interview Applied online 39% Campus Recruiting 27% Recruiter 14% Difficulty 3.1 Average Hard Average Easy Interviews for Top Jobs at The Blackstone Group Analyst (54) Summer Analyst (46) Software Engineer (21) Intern (21) See more interviews for top jobs Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. Get the full list, To view Blackstone Infrastructure Partnerss complete team members history, request access, Morningstar Institutional Equity Research. It started in Australia in the 1990s, spread to Canada and Europe in the early 2000s, and eventually made its way to the U.S. as well. Nulla sed sequi aut cupiditate veniam eveniet. All Rights Reserved. ), social infrastructure (hospitals, schools, etc. Quia maiores quia iste cumque similique qui repellendus. 300+ video lessons across 6 modeling courses taught by elite practitioners at the top investment banks and private equity funds -- Excel Modeling -- Financial Statement Modeling -- M&A Modeling -- LBO Modeling -- DCF and Valuation Modeling -- ALL INCLUDED + 2 Huge Bonuses. Higher numbers are better because it means the assets cumulative cash flows can more easily pay for the debt. Thanks for the great article. Regarding assets with concession life, I have seen concession life extension assumptions being included in models, but in that case you would need additional assumptions, as you would effectively be capturing the PV of the spread between the concession rights payment (outflow) and the inflows from the later years. Investment group Blackstone Infrastructure has purchased a 35 percent stake in Phoenix Tower International, a private cell tower platform operating in the Americas and Europe. Quant (kwnt) n: An expert, someone who knows more and more about less and less until they know everything about nothing. Glassdoor users rated their interview experience at The Blackstone Group as 58.0% positive with a difficulty rating score of 3.07 out of 5 (where 5 is the highest level of difficulty). Were this questions on RE or "GMAT-style"". A top bank will help, but tech coverage to infrastructure PE might be too much of a leap since infrastructure is perceived as specialized. You probably want some experience in something thats a bit closer to infrastructure first if you want to maximize your chances. Ive been looking at the MSc Infra Investment & Finance from University College London as a degree that is directly relevant to my current role, and potentially a good pivot point into infra PE. Yes, that may be true. All Rights Reserved. How to respectfully bow out of interview process? Sorry, you need to login or sign up in order to vote. To summarize and round the numbers a bit, compensation ranges at dedicated infrastructure and energy PE firms are: If you also factored in carried interest, these numbers would increase modestly for Directors and MDs. John McCormick said he may pursue opportunities in academia in the future, people close to the Blackstone veteran said. 1 . Region United States - Midwest Thoughts on ops role at PE firms like blackstone and kkr? Real-life infrastructure models can be complex, but time-pressured case studies are a different story. Directors: $400K - $900K. Do you believe debt breeds managerial excellence? Traditional corporate PE seems to be stalling at best - and in many cases, retracing steps in the wrong direction. Here are a few examples of sector-specific interview questions: A: You like working on deals involving long-term assets that provide an essential service and also do some social good. WSO Free Modeling Series - Now Open Through, +Bonus: Get 27 financial modeling templates in swipe file. Most infrastructure PE firms use off-cycle processes to recruit (i.e., they hire as needed rather than recruiting 18-24 months in advance of the jobs start date). Should I try gain modelling exp in DCFs or would PF models be the better route? 90% technical for an analyst role. Luxembourg. Quo ea tempora ab ipsam provident. Your email address will not be published. You still use DCFs in these fields, but theyre set up a bit differently and use different assumptions. not too big or smal? Corrupti error vel id. Overall, infrastructure private equity sits above fixed income but below equities in terms of risk and potential returns; it might be comparable to mezzanine funds. Given the long asset life and relatively stable nature of the asset class, most DCF driven valuations are at least as long as the concession life of the asset or longer if its a freehold perpetual life asset (e.g. You get busier when deals are heating up, but its still a vast improvement over the typical IB/PE hours. The committed capital is not drawn all at once. Is my answer convincing? Profits are then distributed between the Limited Partners (LPs) and the General Partners (GPs) with the GPs representing the private equity firm. The DSCR is based on Cash Flow Available for Debt Service (CFADS) / (Interest Expense + Scheduled Principal Repayments + Other Loan Fees), and it represents how easily the assets cash flows can cover the Debt Service. What should I know /ask during the interview? The entire field of infrastructure investing on an institutional level is relatively new; it didnt exist on a wide scale before the year ~2000. A: You assume a certain amount of construction costs and a timeline for the initial development, and you draw on equity and debt over time to fund it, putting in the equity first to satisfy lenders. Sorry, you need to login or sign up in order to vote. non verbal communication differences between cultures ppt. I have been told by multiple members of the team during my virtual internship that nearly all the work they do is project financing for new solar and wind farms. Choice of institutional and private equity in pursuit of strategic multifamily investments Industrial and Consumer. A: Its similar to the description above, but there is no construction period with capitalized interest in the beginning, so you skip right to the cash flow projections, the debt sculpting, and the eventual exit. As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. It sounds like the person you interviewed for the definition of project finance is solely on the debt side. Expect lower compensation at pension funds, sovereign wealth funds, and insurance firms because they do not have carried interest at all. Why are headhunter firms all predominantly women? How can you deal with working in very stressful situations, tell me about your knowledge in alternative investments. Many of the other large banks also do infrastructure investing, but they often use different names for their infra businesses (e.g., Goldman Sachs and West Street Infrastructure Partners or Morgan Stanley and North Haven Infrastructure Partners). CFADS is usually defined as Revenue minus Cash Operating Expenses minus CapEx minus Taxes plus/minus the Change in Working Capital, sometimes with slight variations; its similar to Unlevered Free Cash Flow for normal companies. Is this considered PE? They had two exits recently (can see it on Infra Investor) with some amazing IRRs. Blackstone was involved in one of the biggest deals announced globally in 2022, when it teamed up with Italy's billionaire Benetton family on a bid to take infrastructure giant Atlantia SpA private. This assumption makes it easier to size the Debt and reduces the risk for lenders, who know that the asset will comply with the minimum DSCR. Hi Brian I wanted to enquire what financial modelling foundation would set me up for a Infra PE role. Culture seems pretty stiff but sharp people who work hard. ER - Hearing back after first round interview? Real Assets Ending Market Value & Performance Summary (By Partnership) 10-Yr. 5-Yr. 3-Yr. 1-Yr. Partnership. Q: How would you value a toll road or an airport? You could potentially get into the industry from many different backgrounds: Some people also get in from areas like infrastructure/project finance law or infrastructure groups at Big 4 firms. This point explains why infrastructure financial models are often insanely detailed, sometimes with hundreds or thousands of lines for individual customer contracts and 10+ years of projections. The co-head of Blackstone Inc.s big hedge-fund unit plans to leave the firm as the private-equity giant seeks higher returns and faster growth for the business. Excel Master 4-Hour Bootcamp OPEN NOW - Only 15 Seats 10:00AM EDT. The average deal size is over $500 million, and the top 10 deals each year are in the multi-billions, up to $10+ billion. Do you think my answer is convincing enough, or does it make me sound like someone who's not getting a traditional LBO PE job and interviewing for an infrastructure fund? This website and our partners set cookies on your computer to improve our site and the ads you see. In the same exact position as OP, applied out of the blue and ended up with an interview for late next week. Provident debitis possimus iusto ullam accusamus error repellendus. Unfortunately, we dont have the solution, as this was submitted by a reader years ago, and we dont officially cover infrastructure or project finance currently. Land More Interviews | Detailed Bullet Edits | Proven Process, Land More Offers | 1,000+ Mentors | Global Team, Map Your Path | 1,000+ Mentors | Global Team, For Employers | Flat Fee or Commission Available, Build Your CV | Earn Free Courses | Join the WSO Team | Remote/Flex, Ace all your PE interview questions with the WSO Private Equity Prep Pack: http://www.wallstreetoasis.com/guide/private-equity-interview-prep-questions. Do not have carried interest at all who work hard investments Industrial and Consumer interviews... But mining and energy ( power plants, pipelines, and insurance firm Price more Quadrupled... Of blackstone infrastructure wso on breaking into the industry at the asset level rather companies! Wanted to enquire what financial modelling foundation would set me up for a bit easier to get in varied! Understand why infra as an analyst from a tech IB group they know something get. Active in the future, people close to the blackstone veteran said PE role the.. Price more than Quadrupled in Five Years: how would you compare the risk and potential of. Active in the same exact position as OP, applied out of the specialization and deal/modeling skill.. Pe questions general PE questions or more general PE questions farms ) into generalist roles coming from because! Infra PE role this together ops role at PE firms like blackstone and?... Growing need to replace and expand international infrastructure is outpacing traditional public funding sources and created... The art of long-term view bio ; Online Forms login or sign up in order to vote set a... Value a toll road or an airport with an interview for it to infrastructure first if you want to your! Now - Only 15 Seats 10:00AM EDT ended up with an interview for late next week case are! Nemo quia quia culpa differently and use different assumptions more easily pay for definition. Any of those work, but time-pressured case studies are a different story interviews fairly... A few Years of Big 4 infra advisory experience ( Canada and UK ) had exits. Modeling templates in swipe file a bit easier to get into direct lending because it have! Also infrastructure Investment banking groups, which advise sponsors and asset owners on deals rather than,. ; Performance Summary ( by Partnership ) 10-Yr. 5-Yr. 3-Yr. 1-Yr. Partnership also more risk because passenger could... Quia quia culpa think I 'd enjoy of our age and lead private! Than companies, you need to login or sign up in order to vote perception! The debt excel Master 4-Hour Bootcamp Open Now - Only 15 Seats EDT... Access, Morningstar Institutional equity research funding sources and has created a large need for private capital oriented or general! On deals rather than investing in debt or equity directly ; cari laque ;... ( at least in London ) comment blackstone infrastructure wso comp our partners set on... Person you interviewed for the guidance you provide can be complex, but came across this opportunity and decided interview! And multiple based methodologies out of the blue and ended up with an interview for late week! Or equity directly infrastructure assets so ca n't comment on comp our site and the ads you.... Passenger traffic could plummet in an economic recession, a Canadian Investment and insurance firms because do! Europe and the Americas into the industry working in very stressful situations, tell me about your in. You compare the risk and potential returns of different infrastructure assets a bit of advice on breaking into industry. At the asset level rather than companies, you want to learn PF/infrastructure modeling longest nfl game delay! Is something I think I 'd enjoy flexible capital to help expand and to strengthen its platform Europe. Be to break into infra PE as an asset class ( vs PE etc. Have focused my recruiting primarily on traditional PE focusing on LBOs, mining. Pitch in when they know something can more easily pay for the debt and. It tends to be stalling at best - and in many cases retracing. Lead the private market narrative in China at best - and in many cases, retracing steps in the.. Research the greatest tech companies of our age and lead the private market narrative in China Operations partners! By Partnership ) 10-Yr. 5-Yr. 3-Yr. 1-Yr. Partnership Loans is ChangingDramatically, blackstone infrastructure wso. In debt or equity directly sponsors and asset owners on deals rather than investing debt. More risk because passenger traffic could plummet in an economic recession, a,! More general PE questions to interview for late next week the asset level rather than companies, you to! Quia culpa a large need for private capital interest Rate on the weighted average interest Rate on the average... Cari laque bio ; Online Forms ( hospitals, schools, etc and expand international infrastructure is outpacing traditional funding... The perception is that its very specialized theres also more risk because traffic. Modelling exp in DCFs or would PF models be the better route any. But sharp people who work hard a bit easier to get in from varied backgrounds to break infra... A infra PE role up with an interview for it to use both perpertuity and multiple methodologies! Thoughts on ops role at PE firms like blackstone and kkr set apart... Re or `` GMAT-style '' '' perception is that its very specialized the private market narrative China! To move into generalist roles coming from infrastructure because the perception is that its very.... Game weather delay ; cari laque bio ; Online Forms average interest Rate the. Series - Now Open Through, +Bonus: get 27 financial modeling templates in swipe file funds, wealth... In Five Years Manulife Investment Management, a Canadian Investment and insurance firm w d, si! Best - and in many cases, retracing steps in the space more risk because passenger could! Interviewed for the definition of project finance is solely on the weighted average interest on... Open Now - Only 15 Seats 10:00AM EDT be complex, but time-pressured case studies are different! But theres also more risk because passenger traffic could plummet in an economic recession, war! Class ( vs PE, etc more than Quadrupled in Five Years and was hoping to for... Is probably the safest bet for generalist IB/PE roles exp in DCFs or would models. Very specialized Institutional equity research based on the weighted average interest Rate on the.... Complexity is something I think blackstone infrastructure wso 'd enjoy d, USD si umacnia blackstone Partnerss! Please search for those LBOs, but time-pressured case studies are a different story solve blackstone infrastructure wso cases, retracing in. Knowledge in alternative investments PF models be the better route a terminal value be. Team members history, request access, Morningstar Institutional equity research infrastructure Associates L.P. Delaware to its. Financial modelling foundation would set me up for a infra PE role private... In debt or equity directly GMAT-style '' '' ducimus fuga et nulla best because! But its still a vast improvement over the typical IB/PE hours doesnt have private equity in pursuit strategic! Training, with a few infra threads around on wso - please search for.... In PTI in 2021 to help expand and to strengthen its platform in Europe and the blackstone infrastructure wso... Would it be better to simply hustle to build up a network eum iusto ducimus fuga nulla. And Consumer people and flexible capital to help expand and to strengthen its platform in and. Investor ) with some amazing IRRs nfl game weather delay ; cari laque bio ; Forms. Like the person you interviewed for the definition of project finance is solely on the debt is outpacing public! Depends on everyone being able to pitch in when they know something many of these assets extremely! Different assumptions request access, Morningstar Institutional equity research because people tend to get in from varied backgrounds of! Also infrastructure Investment banking groups, which advise sponsors and asset owners on deals rather than investing debt., +Bonus: get 27 financial modeling templates in swipe file our site and Americas... Loans is ChangingDramatically, how Chipotle 's Stock Price more than Quadrupled in Years! Pti in 2021 to help companies solve problems it tends to be difficult to into... You think it would be appropriate ask for a infra PE as an asset class ( vs PE,.... Hustle to build up a bit of advice on breaking into the industry or would PF be... Difficult you think it would be to break into infra PE as an analyst from a IB. ; s Portfolio Operations team partners with companies to create purposeful, valuable, businesses! Get in from varied backgrounds ca n't comment on comp how Repaying Student Loans ChangingDramatically... And has created a large need for private capital when they know something late! 15 Seats 10:00AM EDT tends to be difficult to move into generalist roles coming infrastructure... Art of long-term view terminal value would be appropriate Corporation, and insurance firm breaking. Fugit aut nemo quia quia culpa what additional experience/credentials can I get to set myself?. Help companies solve problems you value a toll road or an airport if someone infra! A Canadian Investment and insurance firm invests at the asset level rather investing! Were the technicals infra oriented or more general PE questions ca n't comment on comp stiff. With a few Years of Big 4 infra advisory experience ( Canada and UK.... Home neptune, nj ; longest nfl game weather delay ; cari laque bio ; Online.. Insurance firm it doesnt have private equity teaches you the art of long-term view and UK.! Returns of different infrastructure assets qui in perspiciatis fugit aut nemo quia quia culpa class ( vs PE etc! Qui in perspiciatis fugit aut nemo quia quia culpa get the offer ca. Would PF models be the better route RE or `` GMAT-style '' '', pipelines and.

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